updated copy Flashcards
What is infrastructure?
Includes capital goods which provide services
Infrastructure is long-lasting, space-specific, and associated with market failures.
What are the characteristics of effective and reliable infrastructure?
Physical structures like bridges, power lines, hospitals, homes, and services
Infrastructure must be climate durable and designed with future in mind.
True or False: Infrastructure can be catalytic for economic development.
True
Our economy depends on infrastructure, and it supports essential services and economic activity.
What has caused the increase in risks from disasters from 1980 to 2023?
Billion dollar disasters grew from every four months to every two weeks on average
More people are in disaster areas today and more infrastructure is at risk.
Fill in the blank: Developing countries face an _______ in infrastructure.
infrastructure deficit
Institutions and finance in developing countries are often not strong enough to recover from disasters.
What is hybrid infrastructure?
A combination of natural and man-made elements
Examples include a living shoreline combined with a sea wall.
What are the key challenges in infrastructure maintenance?
Infrastructure is designed to last 50-80 years, but maintenance is the hardest part
Effective maintenance is crucial for long-term functionality.
What can be the consequence of the Cross Bronx Expressway’s construction?
It cut the Bronx in two, breaking up racially integrated neighborhoods
It depressed property values and increased asthma rates due to air pollution.
How can investing in resilience benefit infrastructure?
It can save money long-term by preventing damage from natural hazards
The benefit is $4 for each $1 invested in resilient infrastructure.
What are the three conflicting approaches to ethics?
Moral Relativism, Imperialism, Integrated Approach
These approaches reflect different views on imposing values and norms across cultures.
What is the concept of moral relativism?
The idea that business practices might not be acceptable in one’s home country
This can include practices like bribery.
What is utilitarianism in ethical decision-making?
Doing whatever leads to the most good for the most people
This is often referred to as ends-based thinking.
True or False: Ecosystem services are always monetized.
False
The diversity of benefits from nature-based solutions is often undervalued in cost-benefit analyses.
What is the main criticism of traditional infrastructure?
Typically serves a limited function
Unlike natural infrastructure, which can provide multiple economic, social, and environmental benefits.
What does Maslow’s hierarchy of needs illustrate?
People’s motivations across different levels of needs
Ranges from physiological needs to self-actualization.
What is the significance of the SS United States?
Fastest cruise ship to ever cross the Atlantic
It was luxurious and faced challenges with asbestos removal due to differing safety standards.
What ethical dilemma did Polaroid face regarding apartheid?
Had a profitable deal with the South African government
Workers raised questions leading to boycotts and changes in corporate behavior.
What does the integrated approach to ethics suggest?
Some morals apply universally, but local norms must be considered
It advocates for a balanced perspective on ethics.
What is a key feature of effective stakeholder engagement?
A two-way process that includes feedback from affected communities
Consultation should respect local culture and norms.
Fill in the blank: Effective infrastructure can connect _______ and _______.
products and markets, people
This connection is essential for economic activity.
What is the monetary value placed on life in litigation?
Losses in litigation would cost less than a redesign.
What does Kantian ethics emphasize?
The categorical imperative that all people have intrinsic dignity, human rights, and self-worth.
What does the principle of ethical universalism state?
If bribery should not be a law in one country, it should not be allowed anywhere.
What is virtue ethics according to Aristotle?
The idea that we are good people and should do virtuous things.
What is ethical (cultural) relativism?
The belief that one should do as the Romans do when in Rome.
What is integrative social contracts theory?
A theory that considers impacts on communities and allows flexibility for local context.
What are hyper norms?
- We can’t kill each other
- Right to a safe work environment
- No slavery
- Can’t physically or mentally coerce employees
- Provide quality products
- Avoiding fraud
What are first-order norms?
They take priority over second-order norms if local norms are considered worse.
What is the primary energy source for Kenya?
81% of electricity is from low carbon sources like geothermal, wind, and solar.
What are the challenges faced by developing countries?
- Soil degradation
- Deforestation
- Contamination of water
- Overfishing
- Air pollution
- Slums
- Population growth
- Weak institutions
- Poor infrastructure
What is the Triple Bottom Line?
An approach that aims to meet environmental and social goals alongside financial goals.
What is a B Corp?
A benefit corporation that must be certified by the B Lab and report on various forms of capital.
What does closed loop production refer to?
A system where products are designed to be reused or composted, minimizing waste.
What is the agency problem?
The conflict between management and shareholders due to differing incentives.
What are the pros of family ownership in businesses?
- Can make quick decisions
- Long-term focus
- Competitive advantage
- Strong branding benefits
What are the cons of chaebols?
- Lack of transparency
- Nepotism and favoritism
- Competitive disadvantage
- Potential monopoly power
What is the role of state-owned firms (SOEs) in the economy?
SOEs tend to underperform and are less profitable due to their asset-heavy nature.
What is a debt-for-nature swap?
An agreement where a country’s debt is reduced in exchange for environmental conservation efforts.
What is the significance of strong governance in weak institutions?
Strong governance can help compensate for weak institutional frameworks.
What are institutional voids?
Opportunities for businesses to fill gaps where formal institutions are lacking.
What is the importance of concentrated ownership in developing countries?
It increases the significance of networks and business groups due to limited formal institutions.
What is a significant environmental challenge for emerging markets?
Balancing food production with environmental preservation.
What is ‘leapfrogging’ in the context of development?
The ability of developing countries to skip traditional stages of development, especially in technology.
What are the implications of population growth in developing countries?
Increased pressure on resources and infrastructure.
What is the focus of social enterprises?
Combining profit motives with social goals.
What does the circular economy aim for?
A closed loop where waste is minimized and resources are reused.
What does the term ‘hyper norms’ refer to?
Global standards that dictate acceptable behavior across cultures.
What does the presence of institutions not necessarily indicate?
Having institutions doesn’t mean they’re good institutions
What can be a business opportunity in the context of institutional voids?
If India doesn’t have LinkedIn, you can create it
What is the role of trust in the absence of enforceable contracts?
Trust substitutes for enforceable contracts
What are business groups characterized by?
A set of firms bound by formal and informal ties, taking coordinated action
What is a key benefit of brand recognition in markets with weak institutions?
It serves as an indicator of quality
How do business groups compensate for institutional voids in labor markets?
In-house training programs and interior labor mobility
What is the primary function of a Group Center in a business group?
Provides oversight and long-term vision for the whole group
Does diversification in business groups destroy value?
Getting rid of inefficiency creates value
What distinguishes a business group from a multi-divisional structure?
Affiliates in a business group are legally independent
What is the environmental burden formula?
EB = P x A x T (where P = population, A = consumption, T = technology)
What challenges do developing countries face in implementing sustainable practices?
Limited resources, weak institutions, and lack of awareness
Fill in the blank: Sustainability is _______ in developing countries.
expensive
True or False: Business groups are popular in developed countries.
False
What can MNCs do to promote sustainability in developing countries?
Tech transfer for clean energy and public awareness campaigns
What is a potential solution for transitioning away from coal?
High cost of transition and sunk costs in existing infrastructure
Why might Indonesia struggle to become a superpower?
Weak institutions and poor infrastructure
What is the impact of urbanization on environmental issues in developing countries?
Leads to deforestation, pollution, and urban sprawl
What is the significance of community-led development in survival economies?
Addresses local needs and promotes sustainable practices
What is one way to reduce environmental burden according to the provided formula?
Control over consumption
What is the concept of product stewardship?
Looking at a product from raw material stage to disposal to reduce impact
Fill in the blank: As people get richer, their carbon footprint tends to _______.
increase
What factor contributes to the persistence of coal usage despite environmental concerns?
Geopolitics and energy security
What does the term ‘conglomerate discount’ refer to?
The perceived inefficiency of diversified firms on Wall Street
What are the challenges of transitioning to renewable energy in existing grids?
High integration costs and risk associated with new technologies
Fill in the blank: A common problem in survival economies is _______.
deforestation
What is a debt-for-nature swap?
Forgiving debt in exchange for environmental conservation commitments
